Summary:
THIRUVANANTHAPURAM: The state government has authorised 1/3 of basic grant under 14th finance commission award as first installment amounting to Rs 484.54 crores to local governments in the state. It is in the wake of such a request the government has authorised 1/3 of basic grant as first installment. The local governments have also been permitted to utilize the authorised first installment for clearing the bills in the treasury queue system and also for spill over projects.The 14th Finance Commission has recommended an amount of Rs 1739.56 crore as Finance Commission Grant to Local Governments for the year 2018- 19. As per the allocation, gram panchayats will receive Rs 267.59 crores, municipalities will get Rs 122.11 crores and corporations will receive Rs 94.8 crores. Out of this, an amount of Rs 802.78 crore and Rs 650.84 crore have been earmarked as Basic Grant to Rural Local Bodies (Grama Panchayats) and Urban Local Bodies (Municipalities and Municipal Corporations ) respectively.Finance Commission Grant has to be authorized to Local Governments for expenditure only on receipt of the same from Government of India..